I’m feeling a bit anxious about my crypto investments. Could someone clarify if swapping one cryptocurrency for another is considered a taxable event? Do such trades fall under the capital gains tax regulations?
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Indeed, each trade is a realization event, and you must report gains or losses.
It’s true, and keeping detailed records of all transactions is crucial for tax reporting.
Correct. And remember, the tax rate depends on how long you’ve held the assets. Short-term gains are taxed differently from long-term gains. Make sure to consult with a tax professional to understand your specific situation.